FINRA: 70% of Crypto Asset Communications Flout Regulations

<p>A recent examination by FINRA uncovered a
staggering 70% potential rate of violation of its retail communication regulations for crypto assets. This revelation highlights the need for stringent adherence to
regulatory guidelines as firms navigate the complex landscape of crypto assets. </p><p>Under FINRA's targeted examination, over
500 crypto asset-related retail communications were scrutinized. Approximately 70% of these communications exhibited potential violations of
FINRA Rule 2210. </p><p>Crypto Asset Communications</p><p>Among the discrepancies were the failure to
differentiate between crypto assets offered by affiliate companies and those offered by crypto companies, false statements about crypto assets' functions, and misleading
comparisons to traditional assets. These findings raise critical questions for
firms engaging in crypto communications.</p><p>Following the examination, firms have been urged to examine the accuracy of
their retail communications involving crypto assets. According to <a href="https://www.financemagnates.com/tag/finra/" target="_blank" rel="follow">FINRA</a>, clarity
is essential, especially when promoting products and services, as
misleading implications can lead to misunderstanding.</p><blockquote><p lang="en" dir="ltr">In 2022, we launched a targeted exam to review certain member firms that actively communicate with retail customers regarding crypto assets and services. Listen to the latest <a href="https://twitter.com/hashtag/FINRAUnscripted?src=hash&amp;ref_src=twsrc%5Etfw">#FINRAUnscripted</a> to hear the results of our crypto asset communications sweep.